The Quad charts and share ranking table have been updated at the close of trade on Friday, 21 June 2019
This chart of the FTSEJSE All Share Index’ (ALSI) closing level on the Johannesburg Stock Exchange (FTSEJSE) shows the current positive trading channel that the ALSI closing level has maintained. MR believes that the ALSI should breach the upper secondary positive trading channels lower boundary.
Current Closing Level
The ALSI has reached down and is testing the support at the lower secondary, positive, trading channels lower boundary with this support proving to be successful. Following this successful support, the ALSI has traded positively with the target of testing the resistance at the lower, secondary, positive trading channels upper boundary.
Assuming that the inverse relationship that usually exists between the closing level and the leading volumes is maintained, we believe the market is discounting effective resistance at the said boundary. This resistance should lead to the ALSI closing level reversing and trading negatively with the target of testing the support at the lower secondary positive trading channels lower boundary.
The Performance of the MR Long/Short portfolio in 2018
At the close of trade on Monday, 31 December 2018, the MR monthly portfolios in 2018 have out-performed the ALSI by 42.3%.
The Performance of the Long/Short Portfolios in June 2019
At the close of trade on Friday, 21 June 2019, the long side of the June monthly portfolio had appreciated by 2.2% with the short side of this portfolio depreciating by -1.4%. This equates to a net appreciation by this portfolio of 0.8%. With the ALSI having appreciated in June, by the close of trade on 21 June 2019, by 8.2%, the MR June portfolio has underperformed the ALSI by -7.4%.
At the close of trade on Friday, 21 June 2019, the MR monthly portfolios have outperformed the ALSI by 0,2% in 2019.
The June 2019 portfolio is available in the ‘Subscribers/Recommended Portfolio’ tab in our website entitled ‘www.marketmind.co.za’.
Conclusion
MR believes that, if the inverse relationship between the closing level and the leading volumes is maintained in the foreseeable trading time ahead, the market is discounting the ALSI closing level as being successfully resisted at the upper positive secondary trading channels lower boundary. This support should lead to the ALSI reversing with the target of testing the support at the lower secondary trading channels lower boundary.